Found that ideal investment property on the other side of the Atlantic? Thinking of packing up and moving Down Under to live? Got a pretty good UK credit score that you’re keen to impress a new lender in the US or Australia with? That’s great… or it would be if it was that easy. Unfortunately, the US, the UK and Australia all have different credit scoring systems, and what’s worse, it’s almost impossible to take your credit score with you to a different country.
Same-same but very different.
On the face of it, credit scores pretty much mean the same thing wherever you go. The better your credit history, the higher your score. But that’s about where the similarities between our three countries’ systems finish. Even despite the fact that all three rely heavily on the same credit reporting agencies.
Both the UK and the US use the big three: Experian, Equifax and TransUnion. In Australia, TransUnion is replaced by Illion but those two are fairly similar. Now, it would be logical to assume that Experian and Equifax look at the same data-sets wherever they are. But, like much in the world of credit, not all is that logical. Again, it comes back to local laws and regulations – for example, Australia has only just adopted comprehensive credit reporting.
Who looks at what and where?
Data collected by the UK bureaux is pretty extensive, with things such as being on the electoral roll having a positive effect on your score. The UK also seems to collect the most diverse data of the three, including repayment history on some utility accounts, phone accounts and potentially, even rent, which it appears Australia and the US do not collect. However, despite using fairly similar info, the UK maximum scores are all over the place, varying anywhere from 700 for Equifax to 999 for Experian, with a rather odd maximum of 710 for TransUnion sitting in-between the two.
Some people will invest their money with no experience at all. This can be a problem because investments can be really risky. In some cases, you may as well just take a bet at https://casino.netbet.co.uk/ and then hope for the best! Investments can be exactly the same. However, there are a few ways that you can reduce the risk of your investments and make them a lot less of a gamble.
Use a financial advisor
Using a financial advisor can be extremely useful. The advisor will let you know what they would recommend based on the amount of money that you are willing to invest and how much risk you want to take. It is worth noting that all investments have a risk and that risk is that you could lose some of the money that you are investing. It is not like savings where you put your money in an account and get interest on it. With an investment you are buying something with the money and therefore you will need to sell it again to get your money back. You need to make sure that when you sell it, it is worth more than when you bought it. This is tricky, you may need to hold on to your investment for a significant period of time and you will need to be careful as to which you choose. A financial advisor will be able to help you to find things to invest in which will address your needs. You will need to decide how much risk you are willing to take. The more risk that you take, the more likely you are to lose some or all of your money but you will also have a better chance of making a larger return on it. So, you have to decide what you are happy with. It is always wise to invest money that you can afford to lose.
If you are looking for ways to improve your finances, investing is certainly something worth thinking about. The right kind of investment done well can offer a much better return than your spare money simply sitting in a savings account. One market that many people in the UK are starting to look at now is forex. This is the biggest financial market on the planet and sees trillions traded each day.
Investors here choose currency pairs to trade and try to predict whether the price of the pair will go up or down. If you plan to dip your toe into the forex market, you just need an internet connection and some starting capital. You would also need to sign up with a reputable online broker to trade with. Doing your research here first is key so that the broker you pick is a decent one – this AvaTrade review gives an idea of what to look for.
Of course, choosing which currency pairs to trade is also important. But which are the best for new investors to try?
You will find the US dollar in many FX pairs as it is such a major global currency. When combined with the euro, it is a good place to start for new traders. As the euro is also an important global currency, this pair has good stability and liquidity. This means that you will have no trouble finding trading opportunities but should not get overwhelmed by rampant instability. The bid-ask spread is usually low on this pair, which helps in terms of trading costs.
The new year is here, and for many of us, that means it’s the perfect time to start making some positive changes in the way that we live our lives. For some people, the new year is a new chance to start a diet and lose some extra weight. Other people make a resolution to stop smoking or cut down their drinking habits.
One resolution that most Brits can afford to make this year, however, is the decision to cut costs and improve their finances. Even if you’re not struggling to make ends meet, it’s always a good idea to check out some ways that you can keep extra cash aside for the future. That’s why we’ve put together this list of easy ways to improve your finances in 2020.
Keep Your Receipts
Some purchases are easy to keep track of. When you take out a loan for your new car, you can easily see how much you’re spending for it each month. However, one-off expenses are easy to overlook when they’re only very small. If you’re only spending a pound or two on some extra treats for the kids when you’re out grocery shopping, it’s easy to forget all about it.
However, keeping track of all of your expenses will ensure that you’re the first to know when you’re developing a spending problem. Keeping your receipts, or tracking your costs with your online banking system will help you to figure out where you’re overspending.
No matter where you might be in your financial journey, it’s always possible to learn how to be better with your money. Whether you’re starting out with your first job and you’re putting money away in a savings account for the future, or you’re planning for retirement, we’ve all got goals in mind for the cash that we earn. Fortunately, there are lots of things that you can do to make sure that you’re set up for success with your cash.
Sometimes, all it takes to transform your relationship with money is one step in the right direction. For some people, it will be the decision to start using and managing a budget. For others, the decision to use envelopes of cash could change everything.
Here are some quick ways that you could start saving more money, pronto.
Stop Automatically Renewing
Automations make life easier more often than not. Being able to pay for your bills using direct debits that you set up through your bank will mean that you’re less likely to spend a fortune on things like late fees and overdrafts. However, that doesn’t mean that you should be automatically paying for everything.
Many companies, including the ones that provide your gas, electricity, and insurance, will assume that you automatically want to renew your service for another year if you don’t’ cancel when your subscription is about to run out. While allowing that renewal to happen can be a convenient option, it also means that you might not be getting the best deal. Take some time to look around for better offers before you allow yourself to renew.
Keeping all money in the bank is a common practice, and if this is something that you do then you’re certainly not the only one. But while it may seem like a good idea thanks to statutory protections, this is not necessarily the case. Inflation can also have an effect, which ought to be taken into account. This article will explore the pros and cons.
Yes: it’s the ultimate safety net
Deposits made to banks in the UK are protected under a scheme known as the Financial Services Compensation Scheme. Deposits made with each banking company (not each bank brand, and some companies own several banks) are protected up to £85,000, meaning that if the bank goes out of business, you’ll get your cash back. Investment vehicles which can rise and fall in value are not protected, meaning that banks are often seen as especially safe.
There are more advantages to using a bank, especially when it comes to quick withdrawals. Bonds, stock portfolios and more often insist that you lose access to your money for a fixed period of time in return for higher returns, or they may take a long time to withdraw simply due to the level of administration required.
Spring is a good time to review your finances and one area that just about everyone can work on would have to be credit cards. Unlike other finance guides, we don’t think that credit cards are a bad idea. In fact, you should have a few cards in your wallet for a variety of reasons. You can earn rewards, have a source of emergency funds, and also have a chance at building better credit for larger purchases in the future. In fact, it would be very difficult to prove to mortgage companies that you can handle a mortgage if you’ve never had any credit cards.
The problem is that people can get over their heads, charge up too much on a card, and throw off their credit profile. Yet the good part about rebuilding credit is that there are plenty of ways to do so, and balance transfers is just one tool of many to achieve this goal.
But are balance transfers still a good idea? Should you consider a balance transfer with zero interest? There are still plenty of great credit cards that have amazing offers for new customers. If you’re going to explore your options, there are a few things that you should know first.